This compulsory insurance plan designed by the Québec government to insure their workers over the age of 18 in the province, with an annual income of over $3,500. It protects families in the event of retirement, death or disability. The base plan is funded by contributions made by those who work in Québec, as well as their employers. These contributions are collected by Revenu Québec, and managed by the Caisse de dépôt et placement du Québec.
As of January 2019, the plan has been enhanced with an additional plan, with a progressive increase based on the number of years they contribute to the additional plan. Those that no longer contributed prior to 2019 will not be affected by the changes.
The enhancement to the plan will increase rates from 25% to 33.33%. Pension salary can reach 114% of the maximum pensionable earnings. (MPE).
For 2021, the base rate for contribution for the QPP is 10.80%, which is split between the employee and employer. Applied to earnings between $3,500 and the maximum amount an employee can contribute of $61,600.
The additional plan will allow a 1.00% contribution rate, which will gradually increase from 2019 to 2025. While the same rules apply for employee and employer as the base rate.
Understanding the plan’s protection:
At Retirement
- The retirement pension under the Québec Pension Plan (increases with enhanced plan)
- Retirement pension supplement (increases with enhanced plan)
Disability
- Eligibility for a disability pension under the Québec Pension Plan (increases with enhanced plan)
- Pension for a disabled person’s child
Death
- Death benefit
- The surviving spouse’s pension under the Québec pension plan (increases with enhanced plan)
- The orphan’s pension
To learn more about how this plan is calculated, review this link from Retraite Québec.
For more information on your contribution to the QPP, also from Retraite Québec, click here.
